· Dollar nurses losses as U.S. economic doubts undercut rally
The dollar nursed losses against most currencies on Monday as disappointing U.S. jobs data caused some investors to scale back bets on a rebound in the greenback.
The euro held gains versus the dollar but faces a test later on Monday with data that is expected to show German industrial output growth slowed at the end of last year.
Speculators have been reducing short positions in the dollar, but some analysts say better U.S. economic data and continued progress in fighting the coronavirus pandemic will be needed for further dollar gains.
Against the euro, the dollar traded at $1.2048 after a 0.7% slump on Friday.
The British pound bought $1.3736, close to an almost three-year high.
The dollar was quoted at 105.38 yen, having pulled back from a three-month high reached on Friday.
The U.S. economy created fewer jobs than expected in January while job losses the previous month were deeper than initially reported, data at the end of last week showed.
The release of U.S. consumer prices and consumer sentiment later this week will help determine whether a recent rise in inflation expectations and Treasury yields was justified.
Any disappointing numbers from either report could knock the dollar lower, some analysts warn.
The dollar index against a basket of six major currencies stood at 91.084, nursing a 0.6% loss from Friday.
Speculators’ net bearish bets on the dollar fell to $29.95 billion for the week ended Feb. 2, compared with a net short position of $33.81 billion for the previous week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data.
In the cryptocurrency market, ethereum fell 3.88% to $1,615, extending a pullback from a record high ahead of the listing of ethereum futures on the Chicago Mercantile Exchange.
Bitcoin, the most popular cryptocurrency, fell 0.88% to $38,936.
· Short positions on the U.S. dollar are ‘not overdone’: Standard Chartered
Steve Englander of Standard Chartered Bank allays worries that the greenback may be a target of the retail-trading crowd, saying the heavy short dollar positioning in the markets right now is “not that extreme”.
· UK says Astrazeneca vaccine prevents COVID-19 death as South Africa halts shots
· German industrial output flat in December
German industrial output stagnated in December as lockdowns at home and abroad to contain the COVID-19 pandemic held back the export-oriented manufacturing sector in Europe’s largest economy, data showed on Monday.
Industrial output was flat on the month after an upwardly revised increase of 1.5% in the previous month, figures released by the Federal Statistics Office showed. A Reuters poll had forecast an increase of 0.3%.
· China reports no new local COVID-19 infection for first time in nearly two months
China reported no new locally transmitted mainland COVID-19 case for the first time in nearly two months, official data showed on Monday, adding to signs that it has managed to stamp out the latest wave of the disease.
· Australia urges calm over AstraZeneca's COVID-19 vaccine after South Africa suspends use
Australia on Monday moved to reassure its citizens over the efficacy of AstraZeneca's COVID-19 vaccine after South Africa suspended use of the shot because data showed it offered limited protection against a new strain of the virus.
· Singapore’s Business Travel Bubble Zone Plan Delayed
Singapore’s efforts to open its borders are stalling, with a plan to allow business travelers to avoid quarantine and stay in a dedicated facility near the airport still not materializing.
The Connect@Singapore pilot program for businesspeople and so-called high-economic value travelers was due to get going in January, yet the tourism board hasn’t selected operators for the facilities where the visitors would stay, the Business Times reported Monday.
· Monks, nurses join third day of protests against Myanmar coup
· Brent strikes $60/bbl as supply cuts, stimulus hopes boost prices
Oil prices rose on Monday to their highest in just over a year, with Brent futures nudging past $60 a barrel, boosted by supply cuts among key producers and hopes for further U.S. economic stimulus measures to boost demand.
Brent crude for April touched an intraday high of $60.06 a barrel, the highest since January last year. The front-month contract was at $59.98 by 0537 GMT, up 64 cents, or 1.1%.
U.S. West Texas Intermediate crude futures for March advanced 65 cents, or 1.1%, to $57.50 a barrel, the highest since January last year.
Reference: CNBC, Reuters
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